Plaintiff #3M® Company filed suit in the USDC SDNY on Friday against New Jersey based Performance Supply, LLC alleging Trademark Infringement, Unfair Competition, False Endorsement, False Designation of Origin, False Advertising, Trademark Dilution, NY State Law Deceptive Acts and Practices, and seeking Injunctive Relief and Exemplary Damages. 3M indicates in the suit that any recovery of damages will be donated to Covid-19 related charities. See the Complaint as filed here:

3M claims that Performance Supply falsely tried to obtain a purchase order and sell through a quote to the City of New York, millions of #N-95 Respirator Masks to be used in the battle against #Covid-19. Performance allegedly used the 3M marks (including the TM phrase “3M Science. Applied To Life”®) and 3M references liberally in its proposal and sought to confuse and deceive NY City into believing that Performance Supply and 3M were aligned and working together on the offer to sell masks. Further, the lawsuit alleges that Performance engaged in price gouging in seeking to charge NY prices that were 500-600% above 3M’s list price.

3M alleges that its marks are incontestable, arbitrary and strong and have long been associated with safety masks and equipment. They stress that during this Corona virus crisis, 3M HAS NOT INCREASED ITS PRICES and that this marks a strong comparison to Performance which is accused of price gouging and other business torts under both Federal and NY State Laws. Performance, sought a purchase order from NY through a quote sent to NY’s procurement director. In its formal quote, Performance states that “acceptance of the purchase order is at the full discretion of 3M…” This is alleged by 3M to show a false designation of origin and false endorsement by 3M of the quote. 3M is represented by Mayer Brown LLP.

Posted by Henry M. Sneath, Esquire Co-Chair Litigation Practice Group and Chair of the IP Practice Group: Houston Harbaugh, P.C. 401 Liberty Avenue, Pittsburgh, Pa. 15222. Sneath is also an Adjunct Professor of Law teaching two courses; Trade Secret Law and the Law of Trademarks and Unfair Competition at Duquesne University School of Law. Please contact Mr. Sneath at 412-288-4013 or sneathhm@hh-law.com.

It would be great if in the midst of the Covid-19 pandemic, that the world could simply focus on health, safety, family and employee issues, but the lawsuits have started. We will monitor them as they will ramp up. Many state and federal courts are shutting down or slowing down so it is unclear when the Covid related suits will actually see a day in court. In New Orleans, an interesting, (albeit somewhat disturbing in the timing), lawsuit has been filed seeking a declaratory judgement against the Governor of Louisiana and global insurer Lloyds of London. Plaintiff Cajun Conti – Oceana Grill Restaurant is seeking property and business interruption insurance from Lloyds, even before they have apparently made a claim. The suit before insurance claim and denial is odd. The suit may be politically motivated. The lawsuit is attached hereto.

Plaintiff restaurant seeks “property damage” for virus contamination of its restaurant, and “business interruption” coverage for the obvious shutdown brought about by government order. If you subscribe to Law360 there is an interesting write-up at: http://tinyurl.com/qscl9m8“Oceana Grill, which is in New Orleans’ French Quarter, argued that its “all risk” policy with the Lloyd’s underwriters should kick in under the circumstances, noting that the policy doesn’t contain any provisions excluding coverage for losses stemming from viruses or global pandemics.” (Law360) “In its suit, Oceana Grill noted that its policy with the Lloyd’s underwriters requires the existence of a “direct physical loss” to property for coverage to apply. According to the restaurant, that requirement is satisfied by the coronavirus pandemic, given that the virus can remain on surfaces for days. Both Governor Edwards and Mayor Cantrell cited concerns over possible physical damage to properties to support their restrictions.” (Law360)

Contact our Pittsburgh Intellectual Property, Data Security, Trade Secret, DTSA and Technology Attorneys at Houston Harbaugh, P.C. through IP and Litigation Sections Chair Henry M. Sneath at 412-288-4013 or sneathhm@hh-law.com. While focusing first on health care and prevention issues for family, friends and employees, we are also beginning to examine the overall Covid Law related issues in business litigation, contract force majeure, trusts and estates litigation and insurance coverage issues that will naturally follow the economic disruption of the Covid-19 pandemic.

Some posts herein were published by the law firm Picadio Sneath Miller & Norton, P.C. (PSMN®) which merged with HoustonHarbaugh, P.C. and are used by permission. Business Litigation. Pittsburgh Strong® and DTSALaw® are federally registered trademarks of HH-Law. See Firm Website at: https://www.hh-law.com/Professionals/Henry-Sneath.shtml

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